
AI-generated summary
HKEX OTC Clearing Corporation has begun accepting Treasury bonds and Bond Connect securities as collateral since 2017.
China News Service, Hong Kong, November 2. Hong Kong Exchanges and Clearing Limited ("HKEx") announced on the 2nd that its derivatives clearing houses, Hong Kong Futures Clearing Company Limited ("Futures Clearing Company") and The Stock Exchange of Hong Kong Options Clearing House Limited ("SEHK Options Clearing House"), have begun to accept eligible RMB fixed-rate assets as non-cash collateral. On the first day, a total of 7 institutions submitted eligible bonds as collateral, with a total value of more than RMB 400 million.
Market participants can use Chinese government bonds and policy bank bonds held through Bond Connect Northbound (collectively, "Bond Connect Securities"), as well as bonds sold offshore by the Chinese Ministry of Finance, to meet margin requirements without having to sell the assets or convert them into cash. This measure expands collateral options and helps participants manage liquidity and funds more effectively in HKEx's derivatives market.
Yu Xueqin, head of markets at the Hong Kong Stock Exchange, said that the expansion of the RMB bond collateral arrangement from the OTC Clearing Company to its listed derivatives clearing houses is another important milestone in strengthening cross-market connections and consolidating Hong Kong’s position as a global offshore RMB center. The Futures Clearing Corporation and the Stock Exchange Options Clearing House are the first listed derivatives clearing houses outside mainland China to accept Chinese government bonds as collateral. The Hong Kong Stock Exchange has cooperated with Xunqing Clearing Co., Ltd. to connect mainland China's bond assets to Hong Kong's derivatives settlement infrastructure, expand the use of RMB assets, and help promote the internationalization of the RMB.
According to reports, Hong Kong Stock Exchange OTC Clearing Corporation has begun to accept Ministry of Finance bonds and Bond Connect securities as collateral in 2017 and 2025. As of September 2026, these bonds accounted for approximately 16% of OTC Clearing Corporation's total margin.
Institutions participating in the mortgage business on that day included Bank of China (Hong Kong) Co., Ltd., Bank of Communications (Hong Kong) Co., Ltd., CITIC Securities International Capital Management Co., Ltd., and The Hongkong and Shanghai Banking Corporation Limited and many other financial institutions.

Wilson, chief U.S. stock strategist at Morgan Stanley, pointed out that although mid-term elections, AI spending pressure and liquidity restrictions may lead to a short-term correction in the S&P 500 index, historical data shows that the market usually goes higher after the election. Investors are advised to buy on dips and are optimistic about the S&P 500 at 8,000 points.

Hong Kong Fintech Week opened on November 2. Chief Executive John Lee delivered a speech saying that Hong Kong will seize global opportunities through strategies such as the Northern Metropolitan Area. The event attracted about 1,000 industry leaders and 800 exhibitors from around the world. Companies such as Du Xiaoman released large financial enhancement models at the meeting.

China's stock market has lost $3.5 trillion since its peak in May, as young investors turned their losses into Halloween costumes. Decorations with the theme of plummeting K-line charts, leeks, and "stay away from fraudulent markets" appeared in places such as Hangzhou and Shenzhen, reflecting retail investors' fear and helplessness over the violent fluctuations in the A-share market.

The China Finance Forty Forum (CF40) released the macro policy report for the third quarter of 2026. The report pointed out that with the release of about 700 billion yuan of policy financial instruments in the fourth quarter, the growth rate of broad fiscal expenditures is expected to improve, and the construction of computing power networks and underground pipeline networks will become a key direction to stimulate domestic demand.

Wanchen Group issued an announcement on November 2 saying that it received a "Notice of Filing" from the China Securities Regulatory Commission due to suspected failure to timely perform its temporary information disclosure obligations on related transactions. The company stated that the current operating order is stable and relevant matters have been rectified.

Beijing-based Empyrean Technology announced a 218.8 million yuan (US$33 million) deal to acquire a 50.38 per cent stake in Shenzhen-based chip design tool developer Easy-Logic Technology.